You ask an interesting question. The ultimate goal with a SaaS is to "land and expand" where you can hook somebody at a cheap point, withhold some valuable fea

You ask an interesting question. The ultimate goal with a SaaS is to "land and expand" where you can hook somebody at a cheap point, withhold some valuable features or add hard limits somewhere, and just wait for customers to self-select: the people that use your thing more hit upgrade walls faster and upgrade further and pay you more over time. Whether or not the ideal inital price is $49 or not, that takes time to determine, but one thing about not offering anything to the lower-end is that you only invite better competition. At $49, you don't give much room for somebody to compete with you on price and still run a profitable business. At $99, attack of the clones. Frankly, after being on HN twice in a week, I am expecting the clone Banner<Noun>s any day now.